Input-Output Price Parity and Farm Profitability: A Strategic Perspective for Karnataka: 25143
Price: ₹ 1000
https://doi.org/10.35716/IJED-25143
Author: Vaishnavi, Lokesha, H., Vedamurthy, K. B. and Manojkumar Patil
Author Address: Department of Agricultural Economics, University of Agricultural Sciences, Bengaluru-560065
Abstract
Agricultural
pricing policies are crucial for farm profitability and food security in India. This study analysed how input and
output prices significantly influence the profitability of cereals in
Karnataka, with the strategic support prices playing a crucial role in
maintaining the price parity. The average annual TFP growth was 1.041 per cent.
Rising input costs, particularly for human labour, led to reduced profitability
for Jowar (6.12 per cent) and Ragi (4.89 per cent). The net effect was adverse
for Jowar (-1.50 per cent) and Ragi (-0.86 per cent) due to rising input costs outpacing output
prices. The study recommended increasing the MSP for Jowar (60 per cent)
and Ragi (46.24 per cent) above the existing levels. A strategic price adjusted
for changing input costs can stabilise farm incomes and promote sustainable
production, enabling efficient pricing policies.
Keywords:
Agriculture
price policy, crop profitability, minimum support
price, price parity, strategic support
price, translog cost function.
JEL Codes: E64, Q10, Q11,
Q18
Description
Indian Journal of Economics and Development
https://doi.org/10.35716/IJED-25143
Impact Factor: 0.2 (2025)
NAAS Score: 6.30 (2025)
Indexed in Scopus (SJR = 0.15)